Operator Tanker Shipping - Tanker Operator

A TANKEROperator publication
Tanker shipping
March 2008
review
Top 30 Tanker T
Companies
Stealth Maritime
Insurance
Chartering
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CONTENTS
Tanker
Shipping
Review 2008
A TankerOperator supplement
www.tankeroperator.com
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Karl Jeffery
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the publisher.
Contents
TANKEROperator’s
Top 30 tanker companies
2 Comment
5 Introduction
6 Teekay Corporation
7 Frontline
8 MOL Tankship Management,
Overseas Shipholding Group
(OSG), Euronav
9 Tanker Pacific Management
(Singapore), Kristen
Navigation, Nippon Yusen
Kaisha (NYK)
10 MISC Berhad (MISC), Tsakos
Group, Vela International
Marine
11 National Iranian Tanker Co
(NITC)
Features
18 Profile: Stealth Maritime
Stealth Maritime and StealthGas
has recently invested in tanker
tonnage to add to the Vafias
Group's portfolio of shipping
interests.
20 Insurance
Just before the P&I renewal
season came to an end for
another year, leading insurance
broker Aon looked at the state of
play in all sectors of the
insurance market.
12 Hyundai Merchant Marine
(HMM), BW Shipping
Managers, Dynacom Tankers
Management
13 Maersk Tankers
14 BP Shipping, Sovcomflot,
Novorossiysk Shipping
(Novoship)
15 National Shipping Corp of
Saudi Arabia (NSCSA),
Shipping Corporation of India
(SCI)
16 Thenamaris, TORM , Chevron
Shipping, COSCO Group,
Kuwait Oil Tanker Co (KOTC)
17 Titan Ocean, China Shipping
Development Tanker, SK
Shipping, Minerva Marine
23 Chartering
Broström Tankers was one of
the first users of what would
eventually become Veson
Nautical's fully-fledged
Integrated Marine Operations
System (IMOS).
23 Profile: Wilhelmsen Maritime
Services
Several companies have lost
their identities as a result of
consolidation into Wilhelmsen
Maritime Services (WMS).
Front cover: Product tankers have and will continue to
boost tanker owners and operators' fleets, TORM being
a classic example. Seen at Copenhagen is the 2007-built
Latvian operated Hyundai Mipo designed 37,000 dwt
Kazdanga.
Tanker Shipping Review March 2008 page 1

COMMENT
Where do we go
from here?
A look into the crystal ball with the help of experts
As everybody knows
forecasting is a
nightmare. No
sooner have you
compiled your masterpiece than
the world conspires against you
and throws your calculations out
of the window.
However, we all do it and
below are extracts from facts,
figures and forecasts recently
supplied by US tanker pundits
McQuilling Services.
As of 1st January 2008, there
were 492 VLCCs, 360
Suezmaxes, 783 Aframaxes, 329
Panamax tankers and 981 MR
type product tankers in service.
With the exception of the MR
types, these totals were an
increase on the figures for 1st
January the previous year,
according research undertaken
by McQuilling.
In 2007, there were 32
VLCCs added and 24 deleted. In
the Suezmax sector, there were
30 additions and 14 deletions,
while Aframaxes showed 65
Additions
additions and 20 deletions. The
smallest sector is the Panamax
tanker types of which 35 were
added and just nine
deleted. In the MR range, 91
were added and 39 deleted.
2007 2008 2009 2010
VLCC 32 42 64 35
Suezmax 30 22 59 37
Aframax 65 76 109 80
Panamax 35 38 27 22
MR 91 169 199 130
Deletions
VLCCs still rule the roost.
2007 2008 2009 2010
VLCC 24 47 3 41
Suezmax 14 26 3 12
Aframax 20 20 6 31
Panamax 9 9 12 27
MR 39 41 22 65
Source: McQuilling Services.
However, some of the larger
vessel deletions were due to
conversions rather than
scrapping.
The years 2008 and 2009 will
provide the indicators of how the
supply side is shaping up.
McQuilling said that the picture
going forward is better balanced
than it was due to the various
conversion projects involving
large tankers earmarked for
rebuilding to drybulk carriers,
FPSO/FSOs, heavy lift and from
single to double hull vessels.
The largest number of
deletions is still expected in 2010
when the IMO 13G single hull
phase out kicks in. However, the
biggest net change is due to take
place in 2009 on the back of the
very large orderbook.
Not surprisingly, the VLCC
sector remained and will remain
by far the largest in terms of
capacity and the 47 exits
predicted against 42 entries
should have a big impact on the
overall tonnage supply.
Suezmaxes remain
moderately balanced until 2009
when a positive net change of 56
vessels is forecast. Aframaxes
are the second largest grouping
by capacity and a substantial
positive net change was expected
in the foreseeable future,
McQuilling said.
Panamaxes remained the
smallest by capacity and this
sector was forecast to remain
balanced up to 2010. MR is the
largest sector by vessel numbers
and this sector also showed
positive net fleet growth until
2010.
McQuilling recently stuck its
neck out to try to predict the
tanker market from 2008 to 2012
published in the annual Tanker
Market Outlook 2008-2012*. By
now, in general terms the market
Tanker Shipping Review March 2008 page 2

COMMENT
Selected spot rate and TCE revenue forecast
by trade
had noted that the world
economic outlook had changed
considerably in the short term
from a year ago.
Growth is expected to slow to
4.8% this year from the 5.2%
seen in 2007. Due to the
situation in the US, which spread
to other financial markets,
McQuilling said there is now a
significant downside risk in the
growth forecast.
Global oil demand is
expected to increase by 1.6% in
2008, 2% in 2009 and 2.2% in
2010. These figures mean
600,000 barrels per day less
demand in 2010 than forecast a
year ago.
However, notwithstanding
this reduction, tanker trade
matrix considerations will boost
transport demand for crude and
dirty products this year by
between 1.2% and 4.1%
depending on the vessel sector.
For VLCCs, McQuilling
forecast a 3.3% demand growth
this year against zero growth
in 2007.
Spot (2008 WS)
TCE ($000/day)
2007 (act*) 2008 2008-12 2007 (act*) 2008 2008-2012
VLCC 265,000 AG/East 72 85 72 39.8 51.4 38.3
Suez 130,000 WAfr/USAC 116 120 107 39.1 37.7 31
Aframax 70,000 Carib/USG 168 180 163 33.6 32.7 27.6
MR 38,000 Carib/USAC 198 205 196 19.8 18.5 17.1
*Actual 2007 average rates based on 2008 levels.
Biofuels use, increases in US
refining capacity and high oil
prices in the short term, plus
global refining rationalisation in
the longer term, pointed to
demand for clean petroleum
product (CPP) shipments
growing to 4.4% this year, up
from 2.4% last year. However,
this figure is lower than the 6.6%
compound annual growth rate
seen since 1998.
The pace of new tanker
ordering has slowed from the high
seen in mid-2006, but not before
establishing huge orderbook
backlogs across the tanker sectors.
Double digit tonnage increases are
expected in 2009, the year which
sees the greatest number of
deliveries scheduled. For the
balance of the period through
2012, a developing tonnage
supply surplus should impact on
freight rates.
The various conversion
schemes seen last year
unexpectedly helped to ease the
impact of the large delivery
schedule. As a result, spot rates
Source: McQuilling Services.
were on average higher in 2007,
due partly to constrained tonnage
supply. McQuilling said that rates
this year could improve further, as
many of the vessels earmarked for
conversion projects exit the fleet.
Because of this unforeseen
conversion programme, many of
the tankers expected to be
withdrawn in 2010, have already
been, or shortly will be, removed
from the fleet. Therefore, the
'2010 effect' on the market has
been drastically diminished from
earlier estimates.
The full impact of the Hebei
Spirit spill off South Korea is
still not clear. There is the
possibility of an accelerated
phase out of single hull tankers,
as a result of this incident. Even
without legislation, the trend will
be to move away from single
hull tankers from this year
onwards.
Despite the weaker freight
rates seen last year compared
with 2006, new and secondhand
asset prices increased by 9.3%
on average across the five tanker
sectors and were showing no
signs of weakening. Internal
rates of return for tanker projects
showed a dramatic reduction
since a year ago. However, that
hasn't stopped owners from
continuing to order new vessels.
But the mechanisms for restraint
are emerging, McQuilling said.
International finance markets
are in turmoil due to the
problems being encountered by
the US economy. This has led to
a tightening of the credit supply,
which should help to stop the
more speculative acquisitions in
a market looking for money.
Crude oil prices are forecast
to be in the $85 per barrel range
this year. Bunker prices are
highly geared to the crude price
and McQuilling expected
bunkers to average $400 per
tonne this year, increasing the
pressure on timecharter
equivalent (TCE) revenues over
last year.
Given this environment,
operators are expected to
monitor vessel speeds closely
and reduce power whenever
possible in order to lower fuel
consumption and costs.
McQuilling also expected
increased focus on backhaul
cargoes and triangulated vessel
deployments by tanker operators
to improve vessel utilisation and
TCE returns.
*Tanker Market Outlook 2008-
2012, 90 pages full colour, 89
figures and 19 tables, price
$1,000. Available in hardback or
pdf format from McQuilling
Services LLC, Ocean house,
1035 Stewart Ave, Garden City,
NY 11530; Tel +1 516 227 5700;
Fax: +1 516 745 6198; E-mail:
services@mcquilling.com
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Tanker Shipping Review March 2008 page 3

TOP 30 TANKER OPERATORS – INTRODUCTION
Fleet increases impact on the
world’s top tanker companies
The next few years will witness significant growth in the number of tankers
in service as the shipyards disgorge their newbuildings.
There have been some
significant changes to
the world's top tanker
companies in the 18
months since we published the
last Top 30 listing in June 2006.
Not least is a change at No 1 with
Teekay overtaking Frontline,
partly due to the Canadian
concern's buyout of 50% of OMI
and partly due to Frontline's sell
off of its older single hull tankers.
Apart from the demise of
OMI, we have also seen the
merger between Sovcomflot and
Novoship rubber stamped.
However, the two companies are
likely to remain separate brands
and have been listed as such.
We have started to see the
large orderbook spawn an
increasing number of deliveries,
a situation which is likely to
continue for at least three years.
For the time being, the number
of vessels entering the fleet will
far outnumber the vessels
deleted column, despite the
number of conversions
underway, or earmarked.
However, as we approach
2010 and the single hull phase
out, scrapping and conversions
are likely to accelerate. In the
Asian arena, we have already
seen South Korea and the
Philippines talking of banning
single hull tankers by that date, or
even earlier in the wake of recent
serious pollution incidents.
In the listing we have tried to
identify those vessels, owned,
managed, or operated. The
description of a vessel operated is
always open to question, but we
have endeavoured to keep it to
those vessels long term timechartered,
or bareboat chartered
and not including voyage
timecharters or spot charters.
To try to list the number of
vessels that say an oil major
might have on charter at any one
time is almost impossible to
define and in some ways
meaningless, as the total changes
on almost a daily basis.
We have only listed the
companies that have a large
presence in the crude oil market
and not those purely engaged in
parcel trades, such as Stolt-Nielsen,
Odfjell and Berlian Laju Tanker.
However, if a company owns,
manages, or operates VLCCs,
Suezmaxes and/or Aframaxes,
plus chemical and product
tankers of over 10,000 dwt, these
have been included in the
aggregate totals. We have not
included LPG or LNGCs in the
totals, but have mentioned them
where applicable. The same goes
for FPSOs.
Noticeable absentees include
Shell (STASCO) and
ExxonMobil in the Top 30
companies, plus some of the other
oil majors. This was due to the
companies scaling back on their
direct involvement in owning and
management. However, most of
the oil majors are still heavily
involved in commercial
management and have hundreds
of tanker on their books daily.
Some companies remain just
outside the Top 30, such as
Petrobras (Transpetro) and
Metrostar, but are expected to be
in the next list published, due to
their respective high number of
large vessels on order.
For example, Transpetro, the
shipping arm of Petrobras, has
4.16 mill dwt of tankers on
order, a figure that is expected to
grow as the company ramps up
its involvement in Brazilian
coastal and overseas crude oil
and product movements.
Among Transpetro's orders
are two 308,000 dwt VLCCs, in
addition to a further 10 x
157,700 dwt Suezmaxes and
Indian tanker owners, such as Great Eastern, are expected to
expand significantly during the next few years.
another four 47,500 dwt
chemical/product tankers.
As for Metrostar, the Athensbased
concern has two VLCCs
and seven Suezmaxes on order
to add to its four VLCCs
currently managed.
A close relative of Thenamaris,
Eastern Mediterranean has seven
VLCCs, three Aframaxes and four
MRs in service, but also just fell
outside the Top 30.
The company recently added
a VLCC and an Aframax to its
fleet having sold off a couple of
units last year.
Japanese K Line also just fell
outside the Top 30 and others
such as Hebei Ocean, Taiwan
Maritime Transportation (TMT),
Lyrkiadopulo, Great Eastern,
Idemitsu Tanker, Chandris, Ernst
Jacob, Hong Kong Ming Wah's
Associated Maritime and Essar
would all have made a Top 50
listing.
Indian and Chinese tanker
companies are expected to
expand considerably in size as
the countries endeavour to put
more of their energy import and
exports into their own hulls.
Currently unknown is the
influence that Iran will have on
the future oil and gas markets.
NITC has been making noises
about ordering a vast amount of
tonnage in Iranian shipyards,
including a large series of
shallow draught Panamaxes for
operation in the Caspian Sea.
There is one thing that is
certain. The Greeks will still be
there or thereabouts in large
numbers, whether based in
Athens, New York or London.
The scale of Greek-backed
investment in recent years in
large tanker tonnage is difficult
to comprehend.
Some of the more traditional
Greek tanker owners have
recently spent near record sums
on drybulk carriers and vice
versa. We have even seen Harry
Vafias' StealthGas move into the
LR1 sector, in addition to
keeping his handysize LPG
carrier sector on the boil.
Last year the magic $150 mill
barrier was broken for a newbuilding
VLCC. This was how
much Vela was believed to have
paid for a series of large tankers.
However, in February of this
year, Oman Shipping Company
confirmed an order for 10
VLCCs, split between Daewoo
and Hyundai. The price per
vessel was put at $154 mill and
they are contracted to be
delivered from the second half of
2011 through April 2012.
As usual when compiling such
a list there is always room for
errors and omissions to creep in.
The Editor would like to hear
from anybody begging to differ on
the figures, or the companies
listed, as any errata will be
corrected for the next edition of
TANKEROperator's Top 30
companies.
Tanker Shipping Review March 2008 page 5

TOP 30 TANKER COMPANIES
TANKEROperator’s
Top 30 Tanker companies
This list has been compiled in terms of deadweight tonnage and includes companies
owning or operating mainstream large crude carriers, chemical and products tankers
of over 10,000 dwt. We have not included FPSOs or gas ships.
The information has been taken from company websites, Equasis database and other
sources, also from the companies themselves where they have submitted fleet details.
Teekay Corporation
(17.04 mill dwt, plus 2.28 mill dwt newbuildings)
Just pipping
1
Frontline to the number
one slot is Teekay. Like many
companies listed in
TANKEROperator's top 20, the
total figure includes several
timechartered vessels and five
FSOs.
However, the total
deadweight does not include
Teekay's more specialist tonnage
such as the five FPSOs; nine
LNGCs, plus another six
building; one LPG carrier, plus
another three on its orderbooks.
The company is
acknowledged as the world's
largest operator of Aframax
tonnage and currently has 57
plus another one newbuilding
Aframax on its books. However,
since the joint takeover of OMI
with TORM, Teekay's product
Bjorn Moller presided over the
joint acquisition of TORM, which
helped Teekay reach top spot.
The Matterhorn Spirit. Photo credit: Teekay Corporation.
carrier and Suezmax fleet have
also grown.
Teekay boosted its fleet by
seven Suezmaxes, four MRs and
four handysize product tankers
(including one newbuilding, due
to be delivered in 2009) and
assumed responsibility for a
further six chartered Suezmaxes,
as a result of the joint
acquisition.
In total, the company now
has 32 Suezmaxes, including
eight commercially managed,
plus another 10 under
construction and 34 owned or
chartered product tankers, plus
another one building.
This decade, a series of
takeovers and mergers has also
seen Teekay emerge as a leading
operator of shuttle tankers. The
figure now stands at 40 in
service, plus another two
newbuildings, due to come on
stream soon. They are mainly
owned by subsidiaries based
in Norway.
One long term chartered
VLCC also helped to push
Teekay into the number one
position.
During the past couple of
years, Teekay has split its
empire into separate quoted
concerns starting with Teekay
LNG Partners and Teekay
Offshore Partners. Late last
year, the company went to the
market with a third enterprise -
Tanker Shipping Review March 2008 page 6
Teekay Tankers.
Under the operational banner
of Teekay Corporation, the
Teekay Tanker fleet was formed
consisting of nine double-hull
Aframaxes and an addition four
double-hull Suezmaxes will be
added within 18 months. An
additional 35 Teekay vessels
have been identified as suitable
for Teekay Tankers to acquire.
In early 2008, Teekay
reportedly purchased six
Aframaxes from ConocoPhillips
for an undisclosed fee. This will
add a further 600,000 dwt to the
total. The company already has a
number of other vessels on
timecharter to the US oil major's
Houston management office.

Frontline
(16.08 mill dwt, plus 2.4 mill dwt newbuildings)
TOP 30 TANKER COMPANIES
John Fredriksen’s
2
main tanker vehicle is
Frontline, whose fleet came out
as No 1 in terms of deadweight
tonnage for several years, but
last year was overtaken by
Teekay, partly due to various
buyouts.
Frontline's total includes
vessels attached to affiliates,
such as Ship Finance
International and others that are
long term chartered.
As of January this year,
Frontline boasted 39 VLCCs, 20
Suezmaxes and eight Obos. Its
newbuilding portfolio included
four VLCCs and eight
Suezmaxes.
The fleet of Suezmaxes, Obos
and VLCCs are owned and
managed by a variety of
companies, but all are operated
under the Frontline banner.
For the last few years, the
managers have been shedding
the single hull elements in the
fleet, either by sale or conversion
to other types of vessels.
However, a few still exist and
are included in the figures
although their days must be
numbered.
Although headquartered in
Oslo, Frontline is a Bermudabased
concern whose vessels are
owned by, or chartered to
separate subsidiaries, or
associated companies.
The day-to-day running of
the company is undertaken by
The VLCC Ocana is commercially managed by Frontline, but technically managed by STASCO.
Frontline Management AS, a
wholly owned subsidiary
of Frontline Ltd. It is
responsible for the commercial
management of the shipowning
subsidiaries, including
chartering and insurance.
Frontline differs to some of
the other tanker operators by
extensively outsourcing its
management functions, such as
technical shipmanagement,
crewing and accounting. The
company uses various flag
states, including Bahamas,
Liberia, Singapore, Norway
and Panama. Both the
accounting and crewing
functions are performed by
independent shipmanagement
concerns.
As for the shipmanagement
functions, these are undertaken
by V Ships offices in Germany,
the UK and Norway; Wallem;
Chevron; ITM Germany;
Thome; Shell; Socatra and BP
Shipping. Some of the
management concerns listed,
such as the oil majors, have
long term chartered tankers to
Frontline, hence they have
maintained the shipmanagement
functions under the terms of the
charter.
Frontline's strategy is to
benchmark the various third
party shipmanagement concerns
used in terms of costs and
operational performance.
Most of the vessels are
operated on the spot market as
Frontline is a believer of
maximising its earnings potential
by playing the voyage charter
market, rather than opting for
long term charters.
Last year, Frontline sold its
shareholding in Dockwise and
Sea Production to concentrate
purely on providing crude oil
transportation services. The
company is in the process of
selling its single hull tankers,
mostly for conversion projects,
such as heavy lift ships and
FPSO/FSOs.
In February, Frontline said
that it was forming another Oslo
quoted subsidiary - International
Tanker Corp (ITC), which will
control six VLCCs and three
Suezmaxes.
Tanker Shipping Review March 2008 page 7

TOP 30 TANKER COMPANIES
MOL Tankship Management
(13.11 dwt, plus 3.04 mill dwt newbuildings)
3
We have taken the
figures for Mitsui OSK
(MOL) purely on the vessels
managed by MOL Tankship
Management and have not
included any of MOL's
subsidiaries, which operate as
separate entities.
A few years ago, the Tokyobased
conglomerate split its
tanker operations into three units
- MOL Tankship Management
Asia, based in Singapore; MOL
Tankship Management Europe,
based in London and MOL
Tankship Japan, based in Tokyo.
The Singapore office handles
around 19 VLCCs, plus a few
chemical tankers. London is
responsible for three VLCCs, two
Suezmaxes, four Aframaxes and
16 chemical/product carriers; while
Tokyo has 14 VLCCs on its books.
In addition, Singapore
handles nine LPG carriers, while
the LNGC fleet is handled
separately.
In February, 2008, it was
reported that the VLCC Welsh
Venture had been sold to
Petrobras, presumably for
conversion to a storage vessel.
Overseas Shipholding Group (OSG)
(11.22 mill dwt, plus 2.73 mill dwt newbuildings)
MOL Tankship Management’s VLCC Iwatesan is one of 14 VLCCs
managed out of the Tokyo office.
4
OSG operates a
mixture of owned,
bareboat and timechartered
vessels and has a substantial
orderbook.
At the top end, the US-based
company has 20 VLCCs, split
equally between owned and
chartered. Another two whollyowned
newbuildings are also to
join the fleet.
OSG currently does not
OSG’s Aframax Overseas Fran seen in drydock at Keppel Verolme.
operate any Suezmaxes, but has
two on order. As for the Aframax
sector, seven are owned and
another 13 are chartered in. In
addition, there are five
Aframaxes on order - four
wholly owned and one chartered.
Another nine crude carrying
Panamaxes are supplemented by
another two both of which are
chartered in, while OSG also
owns four Panamax product
carriers, plus another four
currently on order.
In the handysize sector, OSG
has 12 owned and 19 chartered
vessels, plus 10 newbuildings -
two owned and eight chartered.
The company's US product
carrier fleet consists of four
owned and four chartered
vessels, plus another 10
chartered tankers on order.
In addition and not included in
the figures are 10 ATBS in service
and another seven on order, plus
four large LNG carriers on order.
Two of OSG's Jones Act
tankers have been chartered to
Petrobras America, which the
company claims will be the first
instance of US flag shuttle
tankers used to transport oil from
ultra deepwater drilling projects
in the US Gulf of Mexico.
The oil will be loaded from
an FPSO. The two tankers will
be converted from the 12 ordered
from Aker Philadelphia under
bareboat terms and are expected
to enter service during the first
quarters of 2010 and 2011
respectively.
With these charters, OSG said
that it had fixed 11 out of the 12
x 46,000 dwt tankers ordered at
Philadelphia to oil majors and
refiners.
Euronav
(9.43 mill dwt, plus 1.27 mill dwt newbuildings)
5
The Antwerpbased
crude oil carrier
owns 15 ULCC/VLCCs with
another eight long term
chartered, either directly or
jointly with partners. Two of the
vessels are former Hellespont
441,500 dwt ULCCs. Also two
VLCCs are currently on order
In addition, the company has
14 Suezmaxes, plus another four
on order.
Euronav is part of the Tankers
International Pool (TI),
contributing 21 VLCCs and the
two ULCCs to the pool's total of
43 VLCCs and four ULCCs. The
other two large tankers are
owned by OSG and are sisters to
the Euronav pair.
Tanker Shipping Review March 2008 page 8

Tanker Pacific Management (Singapore)
(9.22 mill dwt, plus 900,000 dwt newbuildings)
6
Singapore-based
Tanker Pacific
Management currently manages
78 product and oil tankers,
FSOs and FPSOs with an
aggregate deadweight in excess
of 11 mill tonnes.
However, several of these
are elderly FPSOs and FSOs,
which have not been included
in the figures. The company
also has four drillships
on order.
Tanker Pacific has 13
VLCCs, nine Suezmaxes
and 20 Aframaxes in the
crude sector and 20 MR and
two LR1 product tankers. The
company has another five
Aframaxes and eight MRs
on order.
The Ofer Brothers affiliated
7
Athens-based
Kristen Navigation
manages 23 VLCCs, five
Suezmaxes and six Aframaxes.
In addition, the company has
three VLCCs, seven Suezmaxes
and two Aframaxes on order.
Seven of the VLCCs in
service are bareboat chartered to
ChevronTexaco.
Tanker Pacific managed Aframax Arafura Sea seen at Fawley.
company has been gradually
selling off or converting its
single hull fleet to FSO, FPSOs
Part of the Angelicoussis
Group, Kristen is the tanker
management arm. Commercially,
the vessels are handled by Agelef
Tanker Chartering in London.
The group also includes
Maran Gas, which was set up to
operate four 145,000 cu m
LNGCs and four 84,000 cu m
VLGCs.
TOP 30 TANKER COMPANIES
and VLOCs. In February it was
reported that it had sold three
late 1980s built Aframaxes to
Shanghai Zhen Hua presumably
for conversion to heavy
lift vessels.
Kristen Navigation (Angelicoussis Group)
(8.3 mill dwt, plus 2.3 mill dwt newbuildings)
Nippon Yusen
Kaisha (NYK)
(6.84 mill dwt, plus 1.75 mill dwt
newbuildings)
8
NYK has offices
worldwide, but for this
survey, we have only included
the tankers managed by NYK
Ship Management, Singapore
and TMM in Tokyo.
The conglomerate also
charters in a huge amount of
tonnage at any one time, which
is almost impossible to quantify,
due to the many worldwide
subsidiaries involved.
However, the Singapore and
Tokyo offices manage 22
VLCCs, four Aframaxes and six
chemical/product carriers
between them, plus six LPG
carriers and one LNGC.
NYK's order book is shown
as five VLCCs, one Aframax,
three chemical/product tankers
and three LNGCs.
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Tanker Shipping Review March 2008 page 9

TOP 30 TANKER COMPANIES
MISC Berhad (MISC)
(6.52 mill dwt, plus 2.61 mill dwt newbuildings)
MISC is one of the
9
world's largest shipping
companies by corporatisation
and boasts a diversified fleet,
including the largest number of
LNGCs owned by a single entity.
A subsidiary of Petronas, MISC
is the leading international
An MISC Aframax, which is managed by AET Shipmanagement,
Malaysia.
Tsakos Group
(6.13 mill dwt, plus 930,000 dwt newbuildings)
The Tsakos Group,
10
including publicly quoted
Tsakos Energy Navigation
(TEN), manages six VLCCs;10
Suezmaxes; 14 Aframaxes and
six newbuildings; nine
Panamaxes, plus four
newbuildings; six MR types and
shipping line of Malaysia.
The principal business of the
Corporation is shipowning,
shipmanagement, and other
related logistics and maritime
transportation services.
In the figures, we have
included the fleet of Londonbased
subsidiary AET, formerly
American Eagle Tankers, which
mainly involves the VLCCs and
Aframaxes listed below. Others
are chartered in, which could
affect the total deadweight at any
given time and have not been
included in the figures.
Of the 48 so called petroleum
tankers in the fleet, 10 are
VLCCs, 32 are Aframaxes, five
are product tankers and one LR2
type. In addition, there are 13
chemical tankers.
AET claims to operate more
than 70 ships, including 11
VLCCs, 49 Aframaxes and 11
product and shuttle tankers, but
some of these are short term
chartered, so are not included in
the figures.
This February, AET took
delivery of the Aframax Eagle
Turin from Koyo Dockyard,
Imabari, which is claimed to be
the 49th Aframax operated by the
subsidiary. By the end of March,
AET will also have expanded its
eight handysize product tankers.
These include long term chartered
vessels. Some of the tankers are
Ice Class, enabling Tsakos to trade in
presence in the product tanker
market by chartering in two
46,000 dwt MR2 types.
Illustrating the structure of a
modern shipping company
today, also in February it was
reported that AET had sold the
four Aframaxes Eagle
Baltimore, Eagle Beaumont,
Eagle Birmingham and Eagle
Boston to Norwegian finance
house ACTA for $52 mill each.
The deal included a 10 year
bareboat charter back to AET,
which will continue to manage
and operate the vessels.
MISC/AET also has one
VLCC, 12 Aframaxes and 16
chemical carriers on order.
Not included in the figures
are 26 LNGCs, three LPG
carriers, three FSOs and the
same number of FPSOs. Three
new conversions are also
underway.
In addition, MISC operates a
large fleet of containerships (19)
and one drybulk carrier.
the Baltic during the winter months.
In addition, the company has
built one LNGC as a 'toe in the
water' exercise.
Vela International Marine
(6.07 mill dwt, plus 3.17 mill dwt newbuildings)
11
We have put Vela in
eleventh place as apart
from owning 19 VLCCs, one
Aframax and four MR product
tankers, the Saudi Aramco
subsidiary has some 40 VLCCs
and product tankers on its books
at any one time through spot and
timecharters.
Therefore, the total is very
difficult to quantify as Vela plays
the market almost daily.
The Dubai-based company
also has a large orderbook of six
317,000 dwt tankers due for
delivery in 2008 and 2009, plus
another four for delivery 2010-
2011.
At the time that the second
tranche of orders were placed
last year, they were believed to
be the most expensive VLCC
newbuildings to date at some
$151 mill apiece. The earlier six
were thought to be contracted at
$128 mill each.
Vela’s VLCC Polaris Star seen at Europoort.
Tanker Shipping Review March 2008 page 10

NITC
(6.2 mill dwt, plus 4.62 mill dwt newbuildings)
TOP 30 TANKER COMPANIES
NITC is how National
12
Iranian Tanker Company
now styles itself following
privatisation in 2000. It is a wellrun
and respected tanker
company that owns one of the
world's youngest and most
modern fleets. The company is
mainly engaged in cross trading
and also charters in vessels for
National Iranian Oil Co's
(NIOC) exports.
The company currently owns
16 VLCCs, five Suexmaxes, five
Aframaxes, three IMO III
chemical/products carriers, plus
one LPG carrier. NITC also has
a huge firm order book in South
Korean yards and many ongoing
projects in local Iranian
shipyards, but which have yet to
see the light of day.
In was widely reported a
couple of years ago that NITC
was looking to order an
additional 35 vessels, split
between 20 chemical tankers
and 10 LNGCs. The LNGCs
will be needed to export gas
from the giant South Pars
gasfield project, funding sources
for which are still under
examination.
There is another project
ongoing for six 63,000 dwt
Caspian Sea tankers to be built at
Sadra and Neka in Iran and
Kransoye Barrikady in
Astrakhan, Russia.
As for the firm orders, these
consist of six 317,130 dwt
VLCCs booked at Hyundai HI
and Hyundai Samho, three of the
same size at Daewoo and another
three at Samsung. Four 163,870
dwt Suezmaxes are also building
at Hyundai Samho. Meanwhile,
Hyundai Mipo is constructing
four 36,200 dwt chemical
tankers.
Locally, NITC is involved in
another two chemical carriers at
ISOICO, Bandar Abbas, which
also has a VLCC on its books.
Another yard called Iran Marine
Industries has also been asked to
build a VLCC, while two of the
proposed six 63,000 dwt Caspian
Sea tankers are to be built
at Neka.
Other tankers are being built
for Iran Shipping lines and
Irano-Hind, which could end up
being operated by NITC as the
operator is involved in joint
ventures with Islamic Republic
of Iran Shipping Lines (IRISL)
and Iran Petrochemical
Commercial, among others.
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Tanker Shipping Review March 2008 page 11

TOP 30 TANKER COMPANIES
Hyundai Merchant Marine (HMM)
(5.62 mill dwt, plus 530,000 dwt newbuildings)
The South Korean
13
conglomerate operates a
mixed fleet of tankers, as well
as having significant LNGC
interests.
Including long term
chartered vessels, HMM
operates 15 VLCCs, three
Suezmaxes, five Aframaxes, six
MR types and six chemical
tankers of various sizes.
As for newbuildings,
including chartered tonnage, the
company has three Suezmaxes,
three MRs and another three
smaller chemical tankers under
construction.
Since the Hebei Spirit
incident, HMM will have to
phase out its single hull vessels
rather sooner than expected, or
hand them back to their
respective owners in the case of
the chartered vessels.
BW Shipping Managers
(5.17 mill dwt, plus 1.10 mill dwt newbuildings)
BW was formed
14
following Hong Kongbased
World-Wide Shipping's
acquisition of Norway's largest
shipping company - Bergesen -
in 2003.
The group's tanker assets are
managed by Singapore-based
BW Shipping, while Oslo-listed
BW Gas and BW Offshore
manage the gas transportation
and offshore oil and gas
production businesses
respectively.
BW Bulk is engaged in the
shipments of coal and iron ore
and these vessels are managed
but not owned by companies in
the BW Group.
BW Shipping has 15 VLCCs
plus another two on order. The
company also has six modern
Panamax product carriers, plus
another six on order.
An original Bergesen ULCC,
the 1983-built BW Nisa, is
currently working as a storage
unit prior to possible conversion
to an FPSO.
BW Shipping’s newly delivered BW Edelweiss.
Dynacom Tankers Management
(4.85 mill dwt, plus 3.09 mill dwt newbuildings)
Athens-based
15
Dynacom Tankers
Management has nine VLCCs on
its books, several of which will
be phased out sooner rather than
later, to be replaced by at least
five newbuilding VLCCs.
One, the 1988-built 276,000
dwt Europe, was sold to FPSO
operator Prosafe last year and is
currently in Singapore
undergoing conversion to a
FDPSO. The FPSO will be fitted
with a drilling unit, hence the
designation 'D'.
In addition, there are seven
Suezmaxes in service, plus
another five under construction,
some of which are ice class.
Six Aframaxes and eight
Panamaxes also make up the
fleet with another 12 Panamaxes
under construction. Some of the
Panamaxes are also ice class.
Tanker Shipping Review March 2008 page 12

Maersk Tankers
(4.85 mill dwt, plus 3.09 mill dwt newbuildings)
TOP 30 TANKER COMPANIES
16
Maersk Tankers is a
division of the AP Moller-
Maersk group.
It manages, both technically
and commercially, seven
VLCCs, 13 LR2 product tankers,
27 MR/handysize product
tankers and nine chemical
tankers.
Newbuildings account for a
further four VLCCs, plus four
LR2s, 10 LR1s, seven MRs and
two chemical tankers.
There are is also tonnage
bareboat and timechartered both
in and out on a regular basis.
Maersk is a member of
various pools.
For example, the large product
tankers operate in the LR2 Pool,
while the MRs and handysize
product tankers are all operated in
the Handytankers Pool.
Another pool Swift Tankers
is a joint venture with Teekay
operating smaller chemical
carriers around northern Europe
and the Baltic.
Maersk Tankers also looks
after nine LPG carriers, plus five
newbuildings and two LNGCs,
plus a further six on order.
Car carriers also used to come
under Maersk Tankers' wing.
Maersk Tankers’ 2006-built VLCC Maersk Nautilus.
However, this department was
recently amalgamated with
Hoegh Autoliners who will
commercially manage Maersk's
PCTC fleet.
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Tanker Shipping Review March 2008 page 13

TOP 30 TANKER COMPANIES
BP Shipping
(4.4 mill dwt)
Unlike some of the
17
other oil majors, BP still
operates a considerable fleet of
tankers under its own banner.
These range from VLCCs
down to MR product tankers.
Recently, the UK oil giant also
Sovcomflot
Despite having no
18
VLCCs, Sovcomflot has
a large fleet of Aframax and
Suezmax vessels and is also
into both LNG and LPG,
primarily on the back of
Russian exports.
We have not included
Novoship's fleet in with
Sovcomflot as we understand
that both entities will continue to
operate separately, despite
merging the shareholding.
Sovcomflot manages 12
Suezmaxes and has one longterm
chartered from Prisco. There are
another four on order.
diversified into owning and
operating LPG carriers and
LNGCs.
BP Shipping manages, or
operates four 'P' class VLCCs,
12 'Bird' ice class Aframaxes,
eight 'Tree' class Aframaxes, 12
(4.36 mil dwt, plus 970,000 dwt newbuildings)
As for the Aframaxes, there
are 11 in service, most of which
are ice class. In addition,
Sovcomflot has 23 MRs, plus
another one to come.
The first of five Panamax
shuttle tankers was also recently
delivered and is included in the
total. The other four are still
to come.
Its gas interests include four
LNGCs, plus another two
newbuilding and two LPG
carriers.
Most of the vessels are
managed by Cyprus-based
Unicom Management Services.
'Virtue' class LR product tankers,
seven 'E' class MR product
tankers (of which two were
recently sold to Grand Union for
$47.25 mill each) and a 128,700
dwt shuttle tanker.
In addition, BP has four LPG
carriers and five LNGCs in
service. The latter includes one
as a joint venture, three 'Trader'
class and the first of the 'Gem'
class. Another three 'Gem' class
LNGCs are still to come from
the builder's yard.
The first of Sovcomflot’s South Korean built Barents Sea shuttle
tankers.
Novorossiysk Shipping (Novoship)
(4.12 mill dwt, plus 1.41 mill dwt newbuildings)
Like its new
19
partner, Novoship
does not operate any VLCCs, but
concentrates on Aframax and
chemical/product tonnage. One
of the reasons for this is that
similar to Sovcomflot, the
vessels have been designed to
transit the Bosporus, where
VLCC transits were banned
several years ago and the Baltic
where there are draft restrictions.
Novoship has management
offices in both London and
Novorossiysk, from where the 28
Aframaxes, 26 chemical/product
tankers and a Panamax are
operated.
In addition, Novoship has a
further six Suezmaxes, four
Aframaxes and two
chemical/product tankers
on order.
Novoship’s Aframax NS Challenger
Tanker Shipping Review March 2008 page 14

National Shipping Corp of Saudi Arabia
(NSCSA)
(3.95 mill dwt, plus 2.67 mill dwt newbuildings)
TOP 30 TANKER COMPANIES
The Dubai-based
20
Saudi tanker operator
manages 11 double hull VLCCs
and has another six on order.
Three VLCCs are
timechartered to Vela, two to
Euronav operating in the Tankers
International Pool, while another
VLCC is chartered to Hanjin.
In addition, NSCSA has 14
chemical carriers through its
80% ownership of National
Chemical Carriers (NCC) with
SABIC. Another 18 x 45,000
dwt chemical carriers are on
order at Hyundai Mipo and SLS.
Six chemical carriers
currently operate in the Odfjell
pool, while seven are on long
term charter to SABIC.
Shipping Corporation of India (SCI)
(3.73 mill dwt, plus 1.85 mill dwt newbuildings)
21
SCI is in the throws of
a fleet replacement
programme as India gears up to
be a major energy player.
The company has several
elderly units and has embarked
on a significant newbuilding
programme, which will
probably grow still further in
the next few years as more
domestic refining capacity
comes on stream.
At present, SCI only has two
VLCCs, plus another two on
order. The company has seven
Suezmaxes and eight Aframaxes
with another six on order.
Panamaxes also figure
strongly in the fleet's make up
with 11 in service and another
six newbuilding. Following this,
there are 14 product and
chemical carriers in service with
another two on order.
Having a large coastline
with massively populated
coastal environs, India relies
on the supply of product
around the coast in large hulls
and also on crude imports
from the Middle East Gulf and
West Africa.
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Tanker Shipping Review March 2008 page 15

TOP 30 TANKER COMPANIES
Thenamaris
(3.55 mill dwt, plus 460,000 dwt
newbuildings)
Thenamaris manages
22
two VLCCs; nine
Suezmaxes, plus two
newbuildings; 11 Aframaxes
TORM
(3.51 mill dwt, plus 1.27 mill dwt
newbuildings)
23
The Danish concern’s
fleet was considerably
boosted by the joint takeover of
OMI by gaining around nine MR
types and 10 handysize
chemical/product tankers.
Most if not all of the fleet
operates in the various pools run
by TORM and its partners.
and nine MR type product
tankers.
The company has also ordered
two Panamaxes.
Including the new
acquisitions, TORM now owns
10 LR2s, 10 LR1s, 27 MRs and
10 handysize product tankers.
The orderbook is also
impressive with three LR2s; 19
MRs, including six Super Ice
Class chemical/product tankers;
and one handysize.
Chevron Shipping
(3.46 mill dwt, plus one 50,000 dwt
newbuilding)
24
The shipping arm of
oil major ChevronTexaco
operates seven VLCCs, some of
which are on long term charter
from Kristen Navigation.
Chevron Shipping also has
four Suezmaxes, five Aframaxes
and four handysize tankers in its
portfolio. A chemical tanker is
currently on order.
As well as operating
conventional tankers, Chevron
COSCO Group
The major Chinese
groupings are roughly
running neck and neck in terms
of total deadweight of tankers in
service.
However, COSCO has seven
VLCCs, two Suezmaxes, 13
Panamaxes and four Handysize
manages an elderly VLCC,
which is currently being used for
storage duties, an LPG FSO, an
LPG carrier and an FPSO.
Together with partners, the
company also has two 154,800
cu m LNGCs on order.
In 2006, Chevron secured the
charters of four Jones Act, US
flagged product tankers, part of a
large series building at Aker
Philadelphia.
(3.45 mill dwt, plus 1.5 mill dwt
newbuildings)
25
tankers operating, according to
the website. The group also has a
fleet of small LPG carriers.
A further five VLCCs, and
LNGCs are under construction,
although others could also have
been ordered under different
affiliated company names.
The former OMI product tanker Tevere is now under TORM
colours.
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The COSCO managed 2006-built VLCC Cosmerry Lake.
Kuwait Oil Tanker
Co (KOTC)
(3.24 mill dwt)
KOTC finished taking
26
delivery of its latest
tranche of newbuildings last
year, but has said another four
VLCCs and two large product
tankers could be ordered this
year as fleet replacements.
Today, KOTC has eight
VLCCs, three LR2s, five LR1s
and another four handysize
product tankers on its books.
In addition, it has four LPG
carriers and two bunker tankers
under management.
Tanker Shipping Review March 2008 page 16

TOP 30 TANKER COMPANIES
Titan Ocean
(3.15 mill dwt)
27
The ship
management arm of
Titan Petrochemicals, Titan
Ocean currently focuses on
carrying crude oil from the
Middle East to the Asia/Pacific
region using its fleet of
VLCCs, while the short range
tankers are involved in the
intra-Asia product trades
and within the Singapore
area.
Titan's present fleet includes
seven VLCCs, four FSUs, nine
coastal CPP tankers and two
Aframaxes.
Titan confirmed that it will
continue to upgrade and
introduce double hull tankers by
way of chartering and
newbuilding with support from
the group's newly acquired
shipyard - Titan Quanzhou
Shipyard.
One of Titan Ocean’s VLCCs.
China Shipping Development Tanker
(3.13 mill dwt, plus 3.38 mill dwt newbuildings)
28
Although difficult to
quantify due to the
numerous subsidiaries listed, the
China Shipping Group is thought
to have four VLCCs in service,
SK Shipping
plus another eight on order.
The vast conglomerate is also
shown to have three Aframaxes
and four new Panamaxes
operating, plus another six
(2.71 mill dwt, plus 3.06 mill dwt newbuildings)
Panamaxes on order.
China Shipping also has a
plethora of smaller tonnage from
70,000 dwt down to river and
coastal type chemical and
product carriers. There is a
substantial orderbook for smaller
tonnage as China seeks to get a
firmer grip on shipping cargoes
in its own hulls.
29
The South Korean
energy concern operates
eight VLCCs, both owned and
longterm chartered, and has
another nine on order.
In addition, SK has two
Aframaxes, plus another pair on
order, and four chemical/
product carriers.
The company is also heavily
involved in the South Korean
gas markets and has six
LNGCs, plus one on order and
seven LPG carriers.
SK also operates a large
local bunkering fleet.
Minerva Marine
(2.63 mill dwt, plus 320,000 dwt
newbuildings)
Starting life as a
30
family breakaway from
Thenamaris, Minerva has
steadily grown as an operator of
Aframax and MR tonnage.
At present, Minerva manages
two Suezmaxes, plus two
newbuildings; 18 Aframaxes and
nine MRs.
In February of this year, it was
reported that Minerva had sold
two Aframaxes - Minerva Emma
and Minerva Libra - to Emirates
Trading for $82 mill each.
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The MR Minerva Vaso seen at Gibraltar.
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www.walport.co.uk
Alma House, Alma Road
Reigate, Surrey RH2 0AX
T: +44 (0)1737 229 590
E: sales@walport.co.uk
Tanker Shipping Review March 2008 page 17

PROFILE: STEALTH MARITIME
Building up a tanker pot
Stealth Maritime and StealthGas has recently invested in tanker tonnage
to add to the Vafias Group's portfolio of shipping interests.
The Vafias Group is not
only known as an
owner and operator of
drybulk vessels and
LPG carriers, it also has interests
in several different types of
tankers mainly through a
subsidiary called Stealth
Maritime.
Stealth Maritime Corporation
was the second company to join
the group being formed in 1999,
some 12 years after Nikolas
Vafias incorporated his first
company - Brave Maritime - by
buying secondhand bulkers of
all sizes.
The second company to join
the group - Stealth Maritime -
concentrates on owning oil
tankers and last year controlled
four Aframaxes, six product
tankers, one VLCC and one
stainless steel chemical tanker,
all being double hull and
virtually new.
In addition, Stealth Maritime
technically and commercially
operates 40 LPG carriers owned
by sister concern StealthGas -
the third member of the group.
All of the tankers are on long
term charters. For example, the
VLCC - VL Malibu (248,976
dwt, built 1989) is operated by
Hyundai Merchant Marine
(HMM), mainly trading between
the Persian Gulf and Onsan.
Three of the Aframaxes are
bareboat chartered out being
managed and operated by
American Eagle Tankers (AET),
while the fourth is also chartered
out under bareboat terms and is
managed by compatriot Cardiff
Marine and operated by
Heidenreich.
Two of the product tankers
are under ASP management and
chartered to BP Shipping, while
the remaining ones are operated
by Navig8, formed by the ex
managers of FR8, who has sublet
them to the likes of Shell, AET,
Stena and others.
As for the chemical tanker
Beffen, she was delivered from
Fukuoka in June 2007 and
immediately bareboat chartered
to Bryggen Shipping & Trading
for three years. Bryggen
originally ordered the vessel.
She is managed by Hong Kongbased
Fleet Management.
At the beginning of this year,
Stealth Maritime purchased two
115,000 dwt newbuilding resales
for $76 mill each. The
Aframaxes will be built at New
Times Shipyard and were
originally ordered by a company
affiliated to the Schoeller
Holdings Group.
Originally to be named Cape
Alba and Cape Angelia, they are
due for delivery in February and
The recently delivered Navig8 Stealth II, which has been taken by
an oil trader for seven years.
Beffen has been chartered back to her original contractor.
May 2009 respectively. They
have been bareboat chartered to
a US operator for five years at
$20,500 per day net each.
Not stopping there, LPG arm
StealthGas purchased two MR
type 47,000 dwt SungDong
newbuilding product tankers last
December from affiliates of
Navig8 for $115 mill in total.
The first one - Navig8 Stealth
II - was delivered in February,
while the second is scheduled for
delivery in April of this year.
They have both been bareboat
chartered to an international oil
trader for seven years. The
aggregate monthly income for
both vessels will be $932,672,
according to StealthGas.
StealthGas also said at the
time of the purchase that the cost
was funded by a combination of
equity from the company's
follow on offering completed in
July 2007 and bank debt.
Last December, ceo Harry
Vafias explained; "Since our
successful follow on offering in
July, we have been very active in
trying to acquire further tonnage
in our core sector, handysize
LPG carriers.
"However, due to the
continued improved market
conditions within this sector,
prices are still rising and existing
owners have become much more
reluctant to sell, therefore we
took the decision to look for a
secure opportunistic investment
in order for us to be able to
deploy some of the funds that we
raised in the summer in an
accretive manner", he said.
Vafias continued; "As such,
we believe that the investment in
two brand new high tech product
tankers fixed on long term
bareboat charters to a first class
name gives us that opportunity.
The LPG sector will continue to
be the core of our ongoing
strategy as we believe the
outlook for the transportation of
these gases is very positive over
the coming years, given the
likely increase of supply of
product at a time of declining
fleet growth in the handysize
sector."
After these latest additions,
the Vafias Group of companies
own 75 vessels of all types,
including newbuildings on order,
making it the third largest
shipping group in Greece by
number of vessels.
Tanker Shipping Review March 2008 page 18

INSURANCE
Large claims hit P&I
and hull and machinery
insurance premiums
Just before the P&I renewal season came to an end for another year, leading insurance
broker Aon looked at the state of play in all sectors of the insurance market.
Aon's conclusion was
that the marine
industry was set for a
continued run of
favourable insurance premiums this
year, despite facing higher risks.
According to the broker's 2008
Marine Insurance Market Review,
the cargo and liability markets
offer a win-win situation to ship
and cargo owners who are paying
less and underwriters who remain
profitable due to few claims - at
least for the time being.
Rates for well managed risks
are expected to continue falling
throughout 2008 by up to 10%.
This positive outlook is due to a
plentiful supply of capacity
combined with a low level of
claims creating fierce competition
between underwriters. The
relatively benign claims
environment reflects major
advances in recent years in ship
design, cargo handling and
general maritime safety.
P&I increases
However, the market is turning
for protection & indemnity (P&I)
and the clubs have announced
big rate increases for 2008 in
response to a surge in the size of
large claims. Neither is the
situation quite so rosy in hull and
machinery, where losses are
starting to impact the accounts of
many insurers, although not to
the same extent as in P&I.
For the shipping industry, two
continuing key risks threaten to
increase the size and cost of claims:
Crew shortages and a
dwindling pool of skilled
officers in the marine industry
could result in increasing
claims due to human error. At
the same time, shipyards are
working at full capacity on
newbuilds and these
additional ships will
exacerbate the existing crew
shortage, especially for
complex vessels such as the
new generation of LNG
tankers. The industry must
focus on recruitment, training
and retention programmes.
Bigger containerships,
bulkers, tankers and dredgers
are creating bigger
concentrations of risk and
magnifying the potential scale
of disaster for P&I, liability
and cargo insurers as well as
for hull underwriters.
Peter Dobbs, Aon's marine team
ceo, commented: "Although the
short term prospects for insurers
and shipowners are generally
very favourable, the combination
of falling premiums and rising
risk does ultimately hold the
potential to destroy this
equilibrium. And, as we are
seeing in the P&I market, that
could provoke a dramatic
response from insurers as they
try to restore the balance
between premiums and claims."
The report provides insight on
rates, capacity and outlook for
the key marine markets in 2008.
Highlights include:
Hull - Rates are reducing by
5-10%. Insurer accounts are
unlikely to be profitable due to
the combination of falling rates
and emerging losses - most are
subsidising hull business with
profits from other lines. South
Korean, Japanese and
Singaporean insurers are
aggressively writing
international tonnage.
Cargo - Ample capacity and
few claims are resulting in
savings of around 10% at
renewal and profitable accounts
for insurers. London maintains
the role of leading rate setter on
the majority of complex global
placements. Meanwhile,
Singapore is emerging as an
international force for
straightforward risks. Outside of
London, insurers are willing to
tempt clients with offers of much
lower deductibles.
P&I - The surge in costly
P&I pool claims in 2006 could
be a sign of the times as
booming shipping operations
become more expensive. In
anticipation, P&I clubs were
already initiating increases of 10-
20% in shipowners' premiums at
the 20th February renewal.
Liability - Rate reductions
are expected around 5-10%.
Liability deductibles are fairly
stable after years of increases to
stay ahead of rapidly rising
Tanker Shipping Review March 2008 page 20

INSURANCE
Tanker owners/operators are facing up to higher P&I club calls
and hull and machinery premiums.
litigation costs. Capacity is
growing and becoming more
global, notably in the Asian hubs
of Singapore and Hong Kong.
P&I renewals
Speaking on the renewal cut-off
date, Stephen Hawke, executive
director of Aon's marine team
and chairman of AonPLF said.
"The 2008 P&I renewal season
has closed and shipowners,
underwriters and brokers can
catch their breath after one of the
most extended and inflexible
renewals in memory.
"Against a backdrop of
rocketing pool claims (as identified
in Aon PLF's pre-renewal report,
November 2007) the great majority
of clubs were demanding a double
digit rise (with an average of
around 15% across the 13
members of the International
Group). Two Clubs, the UK Club
and the North of England,
segregated their advertised General
Increase into mandatory (for
increased cost of pooling) and
negotiable (for individual owner's
retention claims and general club
inflation) elements.
"Largely speaking the Clubs
maintained their discipline and
the renewal was remarkable for
the lack of flexibility in the
individual negotiations. Owners
with better than acceptable
records have found themselves
paying double digit increases
with concession only being
granted for term changes (for
example, increased deductibles).
"The renewal was also
noteworthy for its lateness with
more than the normal percentage
of owners negotiating up to the
very last minute. This is a
reflection of the hardness of
underwriter's attitude but also a
predictable, but no less
unwelcome, consequence of the
absurdly late release of the
reinsurance tariffs. Given that
the reinsurance element of the
premium represents a significant
part of an overall owner's cost it
is surely not unreasonable to
require it be released earlier than
(this year's) 23rd January.
"Premiums for shipowner's
non-retention claims (for example,
abatement, pooling and
reinsurance) continued to increase
with many owners having 50% of
their premium being paid away in
non-negotiable costs. Indeed
owners paying away in excess of
70% is no longer uncommon and
the need for a recalibration of how
premiums are assessed and a
greater transparency in how they
are allocated becomes ever more
urgent.
"Overall there appears to have
been a greater than normal amount
of owner's moving clubs: whilst
there is no immediate financial
benefit for so doing it is clear that
many owners have been
unimpressed with the rigidity of
their existing club's approach,
which has clashed with often longterm
and cordial relationships.
"In summary, Aon PLF would
estimate that premiums to the
International Group will have
risen by well over 10% and
perhaps as high as 15% when
changes in terms are factored
in," Hawke said.
Aon's P&I post-renewal report
will be published in March.
Information extracted for the main processes for co-ordination purposes, should strictly be a
by-product of what the main stakeholders perceive as their primary work.
Any extra work to inform others is bureaucracy.
Information delivered for co-ordination purposes should be delivered in the relevant form and
at the time of need to the stakeholders needing to co-ordinate.
For example fleet managers need to be informed of items when the processes at risk require
their involvement.
A well thought out solution, such as Task Assistant, helps portray a company in the
best light without adding needless bureaucracy.
Our target is to use information to support human performance and demonstrable
competence without building bureaucracy
www.ulysses-systems.com
Tanker Shipping Review March 2008 page 21

CHARTERING
Veson systems -
15 years on
From small beginnings in 1993, an integrated chartering and operations system was
Broström Tankers was
one of the first users
of what would
eventually become
Veson Nautical's full-fledged
Integrated Marine Operations
System (IMOS).
Thus far, the company has
been using IMOS for its
chartering and operations
activities for more than a decade.
In 1993, Börje Forss,
Broström Tankers' chartering
manager based in Gothenburg,
and Michael Veson, founder of
the predecessor of Veson
Nautical, began working together
to create a tailor made solution
for Broström's chartering
calculation needs.
Forss explained, "Originally
we had a DOS based calculation
program, but it did not have the
functionality or power we
needed. Michael Veson
approached us with the
beginnings of a solution and we
started working together."
Because of his understanding
of the shipping business, Veson
ensured that flexibility was one
of the most important benefits
included in the IMOS program.
For Broström, that flexibility
translated into the ability to
quickly produce complicated
voyage combinations, despite
variability in the figures using
IMOS' calculations and distance
tables. Regardless of how
Broström chose to run its
calculations, the company
claimed that it could accurately
forecast voyages and earnings.
Today Broström Tankers
conducts about 2,000 voyages per
year, transporting cargo for oil
majors such as BP,
ChevronTexaco, ExxonMobil and
Shell, among others. The
chartering and operations staff
believed that the Veson software
provided them with a competitive
edge. "With IMOS, we can
always evaluate which cargo is
the best for each vessel. In
addition, the ability to combine
voyages is both significant and
unique," explained Forss. "I'm
sure we make better decisions,
because when you have a good
calculation tool and you can
combine voyages, it's truly a
benefit."
Gothenburg headquartered
Broström is one of northern
Europe's leading chemical and oil
industries' logistics companies.
The company is involved in two
areas - industrial product &
chemical tanker shipping and
marine & logistics services.
Broström manages about 35
vessels - owned, partly owned and
some under commercial
management- operating mainly
within Europe. The fleet primarily
transports refined petroleum
products including gasoline, diesel
and easy chemicals.
Last November, Neste Oil
also became a fully operational
user of IMOS across its managed
fleet of 30 tankers.
Subsidiary Neste Shipping
transports about 40 mill tonnes of
crude oil, oil products and
chemicals per annum. The vessels
are not only crude oil, product
and chemical tankers but also the
company has two tug/barge
combinations and three tugs. The
operations are concentrated
mainly in the Baltic, the North
Sea and the North Atlantic region.
IMOS' visual design is
claimed to have shortened
training time for new staff
getting accustomed to the system
Broström believed Veson’s software gave the company a competitive edge.
but most important, Neste now
has a corporate wide,
consolidated platform that
provides access to crucial
information easily and quickly,
the company said.
"The greatest benefit we
have experienced is having an
integrated system that handles
chartering, operations and
accounting," explained Joakim
Kärkkäinen, vice president of
Neste Oil Corp's shipping,
finance and IT Department.
The software was installed
alongside the company's existing
corporate financial system.
Kärkkäinen explained that the
installation process went
extremely well: "Veson
responded to all our needs and
requirements; response time was
excellent and we all worked hard
to complete the installation on
time. The project received a very
high score in the end evaluation
of the project, which proves that
the people involved - both endusers
and staff involved in the
implementation - felt that the
project was a big success. I can
confidently say that this
implementation was the most
successful I've ever seen."
Neste Oil is also currently
evaluating IMOS Trading,
Veson's module that adds
forward freight agreements
(FFA) functionality to the
existing IMOS. "FFAs are an
integral part of Neste's Shipping
division's business activities, and
IMOS Trading will enable users
to have a unified picture of all
physical and paper trades," said
Kärkkäinen.
Veson has also supplied the
National Shipping Corp of Saudi
Arabia (NSCSA) with an IMOS
system. NSCSA's commercial
vice president Michael Hudson-
Davies told TANKEROperator,
during a visit to the Dubai office
last November, that the system
was working well (see August/
September 2007 issue, page 46).
Tanker Shipping Review March 2008 page 23

SERVICES
Famous Norwegian
names disappear
Several companies have lost their identities as a result of consolidation into
Wilhelmsen Maritime Services (WMS).
On 1st January this
year we saw a new
powerhouse emerge
in the ships' service
sector when several leading
brands, such as Unitor, Barber
Ship Management and Barwil
came under the single banner
of WMS.
One of the main reasons for
bringing some of the most
famous names in the service
sector under WMS' wing was to
plug into a brand - Wilh
Wilhelmsen - that has been in
existence for almost 150 years
and to rename the original
company names to create just
one identity.
WMS president and ceo Dag
Schjerven said that the division
was now part of a global
maritime industrial group, based
in Norway and listed on the Oslo
Stock Exchange.
The idea of forming WMS
first came to light in 2004 when
the Wilh Wilhelmsen board made
the strategic decision to go ahead
and form a combined structure,
resulting in its launch at the end
of that year.
Unitor was acquired in 2005
and later the same year the new
combined organisation structure
of WMS was inaugurated. The
full integration into one entity
was finished at the end of 2006
and Callenberg was the latest
company to join the fold late
last year.
WMS is one of three
business divisions within the
Wilhelmsen empire - the other
two are shipping services and
logistics services. As for WMS,
it is sub-divided into four
distinct areas - ships service,
shipmanagement, ships
equipment and marine
engineering.
Other subsidiaries include
Wilhelmsen Premier Marine
Fuels, which concentrates on
bunker broking; Wilhelmsen
Insurance Services, focusing on
insurance broking; TI Marine
Contracting specialising in low
temperature insulation
technology and Yarwil, a joint
venture between WMS and
Yara International, offering
solutions to lower NOx
emissions.
The four main WMS
subsidiaries are:
Wilhelmsen Ships Service has
come about due to the
integration of Barwil and
Unitor Ships Services.
Wilhelmsen Shipmanagement
takes over the role previously
undertaken by Barber Ship
Management, but excludes
International Tanker
Management (ITM), which
despite being a member of the
group, retains its name.
Wilhelmsen Ships Equipment
is the old Unitor Marine
Systems and focuses on
safety and environmental
solutions. One of its
specialities is the cryogenic
insulation fitted to LNG
newbuildings and also
retrofitted to LNGCs already
in service.
Wilhelmsen Marine
Engineering is the result of
the recent acquisition of the
Callenberg Group, which
brings to the table electro,
automation and HVAC
services also aimed at
newbuilds and retrofits.
WMS president and ceo Dag
Schjerven
Schjerven said that WMS did not
rule out more acquisitions,
following the purchases of
Callenberg and Unitor. During
2007, an agreement was also
signed with Yarra International
on a 50:50 basis forming Yarwil
and another was agreed with
Krystallon.
These agreements gives
WMS an inroad into the world
of SOx, PM and NOx
emissions. The Krystallon deal
sees WMS gain distributor
rights for the BP affiliated
company's SOx and particulate
matter (PM) systems.
Eventually the SOx and NOx
emission solutions could be
merged, Schjerven thought. For
the time being, Yarwil will
concentrate on Scandinavian
coastal vessels as the NOx
technology has primarily been
developed for 4-stroke diesel
engines. It is possible to
remove NOx emission from
larger vessels' generators, but
the technology needed for
larger 2-stroke main engines is
still under development and
will not be available until
some time in the future,
Schjerven said.
At the time of the forming of
the joint venture, Yarwil said that
it also intended to embrace other
areas of emissions control, such
as SOx.
Schjerven claimed that
WMS now handles almost 46%
of the world's fleet of just over
43,000 vessels in some form or
another and the share was
growing as was the fleet.
Backing up his claim, he gave
some facts and figures
concerning the current activity
of the WMS division. The
figures listed below include
those for the recently added
Callenberg Group:-
Annual turnover $950 mill.
About 195,000 deliveries to
some 20,000 vessels annually.
Service and delivery to more
than 200 shipyards.
About 54,000 port calls
handled annually.
Over 300 vessels under
management.
About 8 mill tonnes of
bunkers brokered.
More than 1,900 vessels on
MTS e-commerce technology.
About 5,500 employees.
Around 8,600 seafarers
available through the crewing
network.
The ability to serve customers
in 2,200 ports in 115
countries.
Tanker Shipping Review March 2008 page 24

We care how we carry
For almost half a century Neste Shipping has been
carrying oil in arctic waters, including operations
in the North-East Passage and Canada's arctic waterways.
Greenland has relied on us as their oil
supplier for over thirty years.
We apply the highest standards to guarantee the
safety of our oil deliveries: escort tugs always assist
tankers to our home ports and our product
carriers are registered in the highest Finnish-
Swedish ice class. Not to mention our doubleacting
crude oil tankers (DAT) which are able to
break ice even in the harshest winter conditions.
We always operate safely and reliably and we
know our responsibilities. Our high-quality fleet
and competent personnel ensure that shipments
are carried to our customers smoothly and without
delay at any time of the year.
Neste Shipping Oy
P.O.Box 95, 00095 NESTE OIL, Finland, tel. 010 45811, fax 010 458 5648, shipping@nesteoil.com, www.nesteshipping.com

Veson Nautical gives you a clear view of your shipping operations
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